One Person Company – The Government of India introduced the One Person Company or OPC concept which is way much better option than sole proprietorship for the budding entrepreneurs. OPC gives entrepreneur complete control over the company and at the same time it reduces the liability. If you wish to explore this option and are willing to understand how to establish One Person Company, read further.
As mentioned above One Person Company is the hybrid of Sole Proprietorship and Company form of business. Here are the features of the OPC:
Limited Liability Protection
Directors and shareholder are not responsible to pay the debts of the company from their personal assets even if the company is declared insolvent. It has the words ‘OPC Private Limited’ as part of its name.
Never ending characteristic
Ever if the Shareholder or Directors go away from the company, “One person company” continues its existence.
Name of the Company is protected
After “Registering One Person Company” with the registrar of companies, the name of the company gets protected. Registrar of companies will not accept registration of another company, which is similar, identical or resembling with an existing name.
A company being a legal person is distinct from its directors and shareholder. Creditors of the company cannot claim the debt, from the property of Directors and Shareholder.
Single person can start a company
An “One Person Company” can be incorporated by only one person as Individual.
No Criteria of minimum paid up capital
No minimum capital is required to start an "One person company".